Investors observed steady oil markets on Friday, 3 July 2026, ahead of the U.S. Independence Day holiday weekend, while closely tracking developments in U.S.–Iran negotiations. Brent crude futures, the global benchmark, edged up 0.2% to $71.96 a barrel at 05:21 ET (09:21 GMT), whereas U.S. West Texas Intermediate (WTI) futures were essentially unchanged at $68.66 a barrel.
The market’s risk premium on geopolitical tensions eased after the signing of an interim Middle‑East peace deal last month, prompting traders to unwind short positions and anticipate ample near‑term supplies. ANZ highlighted that the Brent futures curve remains in contango, with prompt contracts trading below longer‑dated contracts, reinforcing expectations of near‑term oversupply. The bank also noted that Saudi Arabia’s crude exports have recovered to roughly 90% of their pre‑war levels, supporting the oversupply view.
U.S. President Donald Trump publicly stated that Iran had “agreed to just about everything we need,” signalling perceived progress in the talks. However, a Wall Street Journal report indicated that Tehran has so far rejected a U.S. proposal that would require Iran to renounce its claims over the Strait of Hormuz in exchange for access to billions of dollars in frozen Iranian funds. The proposal also offered financial incentives, including the release of frozen assets, to secure unrestricted passage through the strategic waterway, but Iran’s refusal keeps the strait a key sticking point in the negotiations.
Media observations suggest that shipping activity through the Strait of Hormuz is showing early signs of recovery, though the waterway remains a focal point of diplomatic friction. Meanwhile, lower crude prices have spurred buying interest from China’s independent refiners, aided by more flexible pricing from Saudi Arabia and Kuwait.
ANZ further reported that Iran continues to struggle to market its crude, with more than 58 million barrels remaining in floating storage and over 90% of that volume still without a destination, according to data from Vortexa. The combination of recovered Gulf flows, Saudi export rebound, and persistent Iranian storage constraints underpins the current market outlook.
The article was contributed by Roushni Nair and Scott Kanowsky for Reuters and published on Investing.com under the commodities section.